QUEST CNG Phase 1 Approved Final Report 061512

FEASIBILITY STUDY
Evaluation of Technical and Economic

Parameters of Natural Gas Delivery Using
Compressed Natural Gas (CNG) Technologies
PHASE 1
Prepared for
QUEST Nova Scotia
Prepared by:
Mark A. Epp, P.Eng. Principal
Geoff Bowering Business Analyst
Jenmar Concepts
Doc. No. QN-0009-00 Rev 2
June 5, 2012
This report is funded by a grant to QUEST from the

Province of Nova Scotia and the Nova Scotia Department of Energy.
- COMMERCIAL CONFIDENTIAL JENMAR CONCEPTS

220 20111 93A Avenue, Langley, BC, V1M 4A9
Telephone: 604-888-4430; Facsimile: 604-888-4431
PREFACE
QUEST Quality Urban Energy Systems of Tomorrow is a national non-profit organization
advancing education and research for integrated energy systems (linking energy with landuse, buildings, transportation, waste, water and wastewater at a community, neighbourhood
or site level) to develop and support sustainable communities in Canada and is committed to
making integrated community energy solutions (ICES) the new standard for land-use and
transportation planning and development. QUEST works actively across Canada with its
Caucuses. QUEST Caucuses provide a collaborative forum for organizations interested in
approaching and managing energy challenges and opportunities in a manner consistent with
QUESTs principles, mission and vision.
A QUEST Nova Scotia Caucus was formed in 2010, and includes the following organizations:
The Province of Nova Scotia, Efficiency Nova Scotia, Heritage Gas, Dalhousie University,
Eco Efficiency Centre, Ecology Action Centre, Clean Nova Scotia, Halifax Regional
Municipality, Union of Nova Scotia Municipalities, Clayton Developments, Eastport
Developments, Cape Breton Municipality (CBRM), Nova Scotia Community College, Nova
Scotia Agricultural College, Green Power Labs, The Construction Association of Nova Scotia,
Atlantic Chapter Green Building Council, Canadian District Energy Association, AltaGas,
Heritage Gas, Natural Gas Vehicle Association, and the Canadian Gas Association.
The Nova Scotia Department of Energy recently contributed funds to QUEST to investigate
ways to advance sustainable transportation in the province; and the economics and
supply/demand potential for using compressed natural gas in vehicles in the province and to
supply businesses and communities not connected to the natural gas grid. Two working
groups were created to explore each of these topics, and membership was drawn from the
QUEST Nova Scotia Caucus along with suggestions of other appropriate organizations.
This applied research study entitled Evaluation of Technical and Economic Parameters of
Natural Gas Delivery Using Compressed Natural Gas (CNG) Technologies Phase 1 and
Phase 2 was commissioned by QUEST Nova Scotia to explore CNG infrastructure
development scenarios. The study evaluates the conditions and combination of different
parameters that would make the delivery of CNG to Nova Scotia communities economically
feasible.
Acknowledgements
We would like to acknowledge the extensive contribution, guidance and advice of the CNG
Off Grid Steering members representing the Nova Scotia Department of Energy, Heritage
Gas, Enbridge Gas, Stantec, Halifax Regional Municipality and the Canadian Gas
Association.
- COMMERCIAL CONFIDENTIAL -
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JENMAR CONCEPTS
Disclaimer
Copyright Jenmar Compressors Inc., 2012.
These materials may be reproduced in whole or in part without charge or written permission,
provided that appropriate source acknowledgements are made and that no changes are
made to the contents. All other rights are reserved.
The analyses/views in these materials are those of the author(s), and these analyses/views
do not necessarily reflect those of QUEST - Quality Urban Energy Systems of Tomorrow or
its affiliates (including supporters, funders, members, and other participants). Neither
QUEST nor its affiliates endorse or guarantee any parts or aspects of these materials.
QUEST and its affiliates are not liable (either directly or indirectly) nor accept any legal
responsibility for any issues that may be related to the materials (including any consequences
from using/applying the materials' contents).
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EXECUTIVE SUMMARY
Due to the recently abundant availability of natural gas in North America, and the resultant
economic viability in its expanded use, QUEST Nova Scotia has initiated a study to assess
the feasibility of providing natural gas delivery service by road transport to new users located
off the distribution grid. The process for delivery includes three key components; (1) a
mother station to compress gas from a gas supply pipeline for loading into a mobile storage
transport trailer; (2) road transport of fuel to the customer site and; (3) off-loading and
pressure reduction to the customer required supply pressure.
The case study of this paper considers a single user with an annual consumption of 250,000
GJ per annum and located 50 kilometers from the mother station. A mother station and decanting station design is configured and costs are generated to estimate capital costs.
Mobile storage trailers are selected and capital cost estimated. An operations scenario is
defined and all operating costs for the process are estimated from mother station to customer
site. Capital investment financing for 20 years and 6% cost of money is used as the basis for
capital recovery. This analysis makes no assumptions with respect to the appropriate capital
structure for the facilities owner, and therefore does not include an appropriate return on
equity. Nor does it include profit.
An average fuel gas cost of $5.50 per GJ is assumed, which is intended to represent the cost
of the commodity but excludes the delivery charges for receiving natural gas from the local
distribution company, or the capital costs of developing a Custody Transfer Station to receive
natural gas directly from the transmission pipeline. No cost is included for gas supply, meter,
regulator, etc.
Jenmar Concepts opinion of total probable capital cost figures for optimal electric driven and
gas driven compressor mother stations are estimated at $1,423,000 and $1,536,000,
respectively. Underlying assumptions include availability of natural gas and electricity at the
site, and exclude cost of land. The capital cost for the de-canting station is estimated to be
$144,200. Two mobile storage trailers are required for the fuel delivery at $400,000 per unit.
It is assumed that transport operations will be contracted to a trucking company therefore no
investment in truck tractors was considered.
The maintenance cost figures were derived based on a combination of rule of thumb,
experience and scaling calculations, and assume domicile type transport operations. The
operating costs for the mother station and de-canting stations are comprised of natural gas
consumption, electrical energy consumption, maintenance and service. Rolling the present
value of capital in with station operating and fuel transportation costs provides a total fuel
delivery cost. While keeping in mind that several cost elements have been excluded, for or
the electric driven and gas engine driven compressors the total fuel delivery cost is estimated
to be $8.98 per GJ and $9.05 per GJ, respectively. These costs do not include any additional
administration or profit. Electric drive based mother stations are preferred.
As a comparison, average prices in Halifax of propane, heavy fuel oil (#6), heating oil (#2)
and electricity in the volumes required to meet the energy needs of the case study, are
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JENMAR CONCEPTS
currently $17.25, $19.00, $24.42 and $37.78 per GJ, respectively. For large users (50,000
GJ and above) and located within a reasonable distance from the mother station, natural gas
delivered by CNG transport is a very competitive alternative to conventional energy supplies.
Transport distance is a key cost contributor and as a result longer distances yield higher total
delivered cost. A delivery distance of 25 km results in a delivered fuel cost of $8.43 per GJ of
natural gas while a distance of 150 km yields a cost of $11.34 per GJ.
A change in per annum load for the base case, from 250,000 GJ to 50,000 GJ increases the
fuel cost from $8.98 to $10.50 per GJ. This is mainly due to low capital utilization, particularly
in the gas transport equipment.
Operating costs for gas transport equipment is the largest contributor to delivered fuel gas
cost. For per annum loads of 50,000 GJ and larger, increased investment in the largest
possible mobile storage trailers available is favored in order to reduce operations costs.
Reaching the optimum capital investment level in large trailers is limited by allowable road
weight.
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JENMAR CONCEPTS
TABLE OF CONTENTS
1. INTRODUCTION
2. BACKGROUND
3. PROCESS DESIGN OVERVIEW
3.1.
Mother Station
3.2.
Transport Mobile Gas Storage
3.3.
De-Canting Station
4. TECHNOLOGY DESCRIPTION
4.1.
Mother station
4.1.1. Gas Specification
4.1.2. Gas Metering and Regulation
4.1.3. Gas Drying
4.1.4. CNG Compressors and Packaging
4.1.4.1.
Electric Motor Vs Natural Gas
Engine Driven Units
4.1.4.2.
Packaging
4.1.4.3.
Equipment Redundancy
4.1.5. Communication and Controls
4.1.5.1.
Station Control
4.1.5.2.
Loading Authorization
4.1.5.3.
Temperature Compensated Filling
4.1.5.4.
Buffer Storage
4.2.
CNG Bulk Transport
4.2.1. Gas Cylinders and Certification
4.2.2. Gas Cylinder Re-Qualification
4.2.3. Gas Cylinder Suppliers
4.3.
De-Canting and Pressure Letdown Systems
4.3.1. De-Canting Post
4.3.2. Pressure Reduction System (PRS)
4.3.2.1.
Gas Preheating System
4.3.2.2.
Staged Pressure Regulation
4.3.3. PRS System Performance Limitations
4.3.3.1.
MST Piping System
4.3.3.2.
De-Canting Nozzle
4.3.3.3.
De-Canting Post Breakaway Fitting
4.3.3.4.
De-Canting Hose
4.3.3.5.
Multiple De-Canting Posts
4.3.3.6.
Primary Regulators
4.3.4. Codes Standards And Approvals
4.3.4.1.
Mother Stations
4.3.4.2.
De-Canting and Pressure Reduction
Systems
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5. PHASE 1 SINGLE USER CASE STUDY

5.1.
Single User Study Case Definition
5.2.
Base Line Operations Assumptions
5.3.
Mother Station System Design
5.4.
Mother Station Equipment Selection
5.5.
Electrical Load
5.6.
Site Design Concepts
5.6.1. Mother Station
5.6.2. De-Canting Station Site
5.7.
Mobile Storage Transport Equipment
5.8.
Operations Summary
5.9.
Project Capital Cost Breakdown
5.10. Operations Cost Breakdown
5.10.1. Fuel Gas Costs
5.10.2. Maintenance Costs
5.10.3. Electric Power and Fuel Gas Costs
5.10.4. Mobile Storage Transport Operations
5.11. Capital Cost Recovery
5.12. Delivered Fuel Cost
5.13. Competitive Fuel Comparison
5.13.1. Heating Oil (Fuel oil #2)
5.13.2. Propane
5.13.3. Electricity
5.13.4. Heavy Fuel Oil
5.13.5. Justification
6. KEY VARIABLE SENSITIVITY ANALYSIS
6.1.
Impact of Transport Distance On Fuel Cost
6.2.
Impact of Annual Load On Fuel Cost
6.3.
Impact of Various Mobile Storage Trailer Selections
7. SUMMARY AND CONCLUSIONS
APPENDIX A PROCESS FLOW DIAGRAM

APPENDIX B SITE LAYOUT DRAWING
APPENDIX C CAPITAL COST SPREADSHEETS
APPENDIX D PROCESS CALCULATION SPREADSHEETS
APPENDIX E SUMMARY OF TDG REGULATIONS
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1.
INTRODUCTION
Jenmar Concepts is retained by QUEST Nova Scotia to provide a study to evaluate the
technical and economic parameters of natural gas delivery using compressed natural gas
(CNG) technologies. This paper addresses the Phase 1 scope as defined in the QUEST
request for proposal (RFP) with focus on the available technology, key process elements
(including mother station, user site (daughter), transport equipment), and a single user
scenario. This paper also provides a roll-up of capital and operations costs for the single
user scenario followed by a sensitivity analysis of key variables including transport distance,
and load. The sensitivity analysis provides a methodology for optimizing both operations and
equipment selection for the lowest cost solution. A total all-in delivered cost for natural gas
is presented and compared against competing fuels, including propane, fuel oil and
electricity.
2.
BACKGROUND
Natural gas is becoming increasingly attractive as a potential energy source where it is not
currently available. With recent advances in extraction technologies, North America has
abundant proven natural gas reserves able to provide decades of supply. The glut of natural
gas has caused a decoupling of gas prices from those of oil on an energy basis. Natural gas
prices are expected to remain low for the foreseeable future, providing an abundant and low
cost supply of energy. In Nova Scotia, the natural gas distribution system is not yet fully
developed and many parts of the province are not served. Delivery of natural gas to these
regions therefore requires an alternate method. The delivery modes considered by QUEST
include road, rail and water. Rail is considered to be too cumbersome in terms of the
logistics of loading, unloading, proximity of rails to natural gas supply and consumer locations
and scheduling. Transport by water may be feasible in some cases but is also a challenge
logistically. For both rail and water, a road transport component of the delivery process is
anticipated in all but exceptional cases. Delivery solely by road transport remains and is
considered the most viable option and hence the focus of this study.
3.
PROCESS DESIGN OVERVIEW
The process by which CNG is delivered to off-grid locations consists of three major steps.

Compression of gas into mobile storage containers at the mother station

Delivery of gas by road transport to the client site
De-canting and pressure letdown for client consumption
3.1. Mother Station

One of the major challenges for the transport of natural gas is its low energy density. To
increase the energy density of the fuel, it must be either compressed or liquefied. (As
liquefaction facilities are not currently available in Nova Scotia, a consideration of the use of
liquefied natural gas (LNG) is not included in the scope of this study). A mother station
consists of natural gas compression and loading equipment to deliver a high pressure stream
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JENMAR CONCEPTS
of natural gas to mobile storage equipment. The mother station will be located next to a
natural gas distribution pipeline. The gas available from the distribution pipeline will be at a
relatively high pressure typically around 1000 psig. This high pressure allows the use of a 2
stage or possibly single stage compressor with substantial savings in capital and operating
costs.
At the mother station gas pressure is boosted to a discharge pressure ranging from 2400 psig
(16.5 MPa) to 3600 psig (24.8 MPa) depending on the pressure rating of the mobile gas
storage equipment. The compressed gas flows to the mobile storage trailer via a high
pressure gas line and is connected with a high pressure hose and special connection nozzle.
3.2. Transport Mobile Gas Storage
When a mobile storage trailer is full, it is hauled to the customer site by road. At the
customer site the trailer is positioned for off-loading.
3.3. De-Canting Station

The mobile storage is connected to a de-canting post with a high pressure hose and nozzle.
Once the connection is completed, a manual valve is opened by the operator and gas begins
to flow to the pressure reduction system (PRS). The PRS is equipped with gas heating
controls to offset Joule Thompson cooling as the gas is reduced to the low pressures
required by the customers system. As the pressure in the mobile storage is depleted, the
PRS must maintain a constant outflow pressure to the customers system. Upon depletion of
the mobile storage, there must be a smooth transition to a newly delivered full mobile gas
storage so that there is no interruption in gas supply to the customer.
4. TECHNOLOGY DESCRIPTION
4.1. Mother Station
A flow diagram of a mother station is shown in Appendix A.
4.1.1.
Gas Specification
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JENMAR CONCEPTS
The quality of the gas delivered to the mother station site determines the processing
requirements downstream. Table 4.1 shows the average values for gas composition,
including maximum and minimum values.
Table 4.1 Gas Specification
The water vapor content is not specified, however the gas specification from the Maritimes
and Northeast Pipeline defines maximum water vapor at 80 milligrams per standard cubic
meter (Pstd=101.325 kPa and Tstd = 15oC). ISO standard 11439 entitled Gas cylinders High
pressure cylinders for the on-board storage of natural gas as a fuel for automotive vehicles
defines a wet gas as one containing water vapor in excess of 23 milligrams per standard
cubic meter. NFPA 52 also uses the ISO 11439 guidelines in defining gas quality. According
to ISO 11439, wet gases are permissible for introduction into steel and other cylinders as
long as particular gases including hydrogen sulfide, oxygen, carbon dioxide and hydrogen do
not exceed certain composition limits. The limit for carbon dioxide is 4 mol %. The gas
specification of Table 4.1 does not exceed this limit. Hydrogen sulfide, oxygen and hydrogen
are not shown so are assumed to be trace at most and therefore not a concern.
4.1.2.
Gas Metering And Regulation
Gas metering on the inlet of a CNG mother station is recommended as an accounting of the
total gas supplied to the mother station. Metering equipment is often located downstream of
a gas regulator (if provided). The gas supply may be unregulated if the gas pressure
fluctuation throughout the calendar year is less than about 20%. Unregulated gas pressure
provides the highest possible supply pressure enhancing station capacity and reducing
energy costs. A gas pressure fluctuation higher than 20% will necessitate regulation of
pressure below the bottom range of the fluctuation. This reduces capacity and energy
efficiency somewhat but assures a steady input pressure to the compressors and reliable and
steady capacity.
4.1.3.
Gas Drying
A gas dryer is recommended to be installed downstream of the gas supply and upstream of
the CNG compressors. Gas drying provides the following benefits.
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JENMAR CONCEPTS
Assures that gas dew point temperature is well below the coldest temperatures that
may be experienced at the site. At high pressures, the dew point temperature is
elevated increasing the risk of water condensation. By drying the gas, the dew point
temperature is suppressed sufficiently low to prevent this process.
Dry gas protects cylinders from corrosion. This is particularly important if the gas
composition includes some carbon dioxide, sulphur dioxide or hydrogen above
specified limits as recommended by ISO standard 11439. In the case of the gas
specification of Table 4.1, no further drying is necessary for the purposes of
protecting the gas cylinders.
Operational problems can occur with wet gas related to the decompression process.
Joule Thompson cooling can cause gas temperatures to go far below zero. Cold
temperatures may cause wet gas to condense. Coupled with freezing temperatures,
lines may clog with ice causing flow blockage and operational issues with valves
leading to safety concerns in some cases.
The Society of Automotive Engineers SAE J1616 recommended practice guidelines specifies
overall requirements for gas drying dependent on prevailing climatic conditions. Winter
weather conditions are typically the greatest concern for gas drying.
Gas dryers must also be sheltered in a heated enclosure or building. Ambient temperatures
must remain above zero to avoid freezing of entrapped water.
Most natural gas dryers use a process whereby natural gas is passed through a molecular
sieve desiccant bed. The water is absorbed by the desiccant and accumulates in the bed
over time. The desiccant must have the entrapped water removed periodically otherwise the
gas will exit with increasingly higher dew points. It is mainly the process by which the
desiccant bed is dried that differentiates the cost and functionality of the different dryer types
using molecular sieve. There are primarily three types of dryers used in the CNG industry.
Twin Tower Regenerative Provides two desiccant beds (i.e. towers). While one
tower is on-line drying the gas, the other tower is off-line having its entrapped water
removed simultaneously through a heated regeneration process after which it waits
on standby. When the on-line tower is saturated with water, switching valves take it
off-line and the drying cycle begins. The other dry tower returns to service at the
same time. This type of dryer allows the gas to be dried continuously without any
downtime; however these dryers are high in cost.
Single Tower Regenerative Provides one tower only. Once this bed is saturated
with moisture it must be taken off-line and dried. While off-line the gas must be
bypassed without drying or gas flow must stop for the tower drying process to be
completed. The tower drying process typically takes about 6 hours.
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JENMAR CONCEPTS
Heater
Bypass
Blower
Tower
Tower
Regeneration
Circuit
Condenser
Figure 4.1 Single Tower Natural Gas Dryer Flow Diagram
Figure 4.2 Single Tower Regenerative Natural Gas Dryer

Single Tower Non-Regenerative Provides a single tower only without on-skid
drying equipment. Tower must be regenerated using a portable drying skid that is
temporarily connected to the dryer. The portable drying skid is usually shared
among multiple dryer locations to save cost. This type of dryer offers the lowest
cost.
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JENMAR CONCEPTS
4.1.4.
CNG Compressors and Packaging
CNG compressor technology is well developed. Most CNG compressors are reciprocating
piston type. Compressors come in various configurations including balanced opposed, radial
and others. The number of stages used is usually no greater than five and usually no less
than two. The greater the gas supply pressure the fewer the number of stages required. The
discharge pressure also has some influence on the number of stages but for CNG bulk
transport applications the discharge pressure is usually between 2400 and 3600 psig.
Table 4.2 Number of Compressor Stages 3600 psig (25 MPa) Discharge
Suction Pressure (psig)
0.2 15
10 130
100 350
305 1150
1050+
No. of Stages
5
4
3
2
1
High gas supply pressure offers the advantage of increased compressor throughput for a
given power rating, lower capital cost, higher efficiency and lower maintenance costs.
4.1.4.1. Electric Motor Vs Natural Gas Engine Driven Units
Most CNG compressors are electric driven with AC induction motors. Electric driven
compressors are substantially less complex and costly than those using gas engine drivers.
Capital cost savings are approximately 30%. Reliability is also substantially higher and
maintenance cost savings of 20% 25% may be realized in comparison to gas engine driven
units. Electric motors are near zero maintenance with only periodic bearing lubrication
required. Gas engine driven units require regular maintenance including oil and filter
changes, fuel filter changes, spark plug replacement, air filter changes, cooling system
maintenance and other maintenance normally associated with spark ignited engines.
The main attraction of gas engine driven compressors is the elimination of the cost for a large
electrical service installation and the ongoing electrical energy costs including demand
charges. Demand charges can be very significant when starting large industrial motors which
may only be operated for a few hours a day. To minimize demand and overall electrical
charges, it is important not to oversize an electric driven compressor installation and to
provide features in the installation for incremental capacity upgrades as load increases.
4.1.4.2. Packaging
CNG compressors are normally packaged complete on one skid. For most Canadian
installations the skid is housed in an enclosure to provide weather protection and heating to
maintain minimum temperatures of steel and cast iron materials susceptible to cold
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JENMAR CONCEPTS
temperature embrittlement. For cold climates, weather enclosures large enough to

accommodate maintenance operations within the package are provided. These enclosures
provide maintenance and minimum egress clearances in accordance with the CSA B108-99
Natural Gas Fueling Station Installation Code.
The gas dryer is also often packaged with the compressor in the same enclosure saving the
cost of an additional heated shelter for the dryer. Furthermore expensive field work is also
eliminated by completing the low pressure gas connections and wiring at the factory.
Enclosed CNG compressor skids are rated Class 1, Zone 1, Group IIA by the Canadian
Electrical Code CSA C22.1, unless equipped with gas detection and ventilation allowing a
Zone 2 rating. This mandates that electrical equipment be explosion-proof rated accordingly
or located remote from the gas equipment. Instrumentation, motors, lights and other
electrical components local to the equipment must comply with Zone 1 or Zone 2
requirements as may be the case. For motor starting, PLCs and other electrical apparatus,
these items are usually located away from the equipment in a non-hazardous area. These
items must therefore be either (1) sheltered and then field wired to the gas equipment or (2)
located in electrical rooms provided on the skid and set back from the gas equipment in
accordance CSA C22.1. The latter requires that the electrical room be carefully designed
with sealed walls and careful locating of doors and openings to maintain the required code
setbacks. The on-skid electrical room is becoming increasingly common for Canadian
installations allowing skids to be fully factory wired and tested, thereby eliminating costly field
work and the uncertainty of incorrect field wiring and re-work. The electrical field work is
reduced to a relatively simple connection of the main electrical power supply.
4.1.4.3. Equipment Redundancy
It is assumed that the mother station must be designed for high reliability and that the delivery
of gas must emulate the reliability of gas delivered by a pipeline. The compressor is the least
reliable piece of equipment in the entire system. It is recommended that 100% redundancy
be provided with the compression equipment. This necessitates that any installation have at
least two CNG compressors such that the loss of one compressor still leaves the station
capable of delivering the required load. The controls and piping system must be such that
one compressor can be taken out of service and isolated for repair without impacting station
operation. This philosophy necessitates if two compressors are required to meet the load
then at least one additional compressor should always be available on standby. When
choosing the number of compressors for an installation, fewer larger compressors is usually
advantageous as the incremental cost to increase capacity by selecting a larger compressor
is usually much lower than adding an additional compressor. In some cases this philosophy
may need to be modified if a single larger compressor is chosen to meet the demand. In this
case 100% redundancy then requires that one additional equally large compressor be
supplied on standby, whereas if 2 compressors are selected to meet the demand, only one
additional compressor of the same smaller size is required for standby. Even in this case,
fewer larger compressors usually provide the cost advantage. In general, Jenmar
recommends the smallest number of larger compressors as the best solution in terms of
capital, installation and even maintenance cost savings.
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JENMAR CONCEPTS
4.1.5.
Communication and Controls
4.1.5.1. Station Control

The mother station is controlled by a programmable logic controller (PLC) based station
control. The PLC provides complete station control including equipment start-up, shutdown,
gas flow control, pressure temperature compensation, flow metering, equipment monitoring,
gas detection, fault detection and alarm shutdowns. The mother station is designed for
unmanned operation but can be monitored and communicated with via web enabled human
machine interface (HMI) technologies. These usually consist of digital displays that can be
read at site or accessed via the internet from remote locations with passwords. The HMI can
be configured to communicate with remote or local servers to dispatch emails or make
telephone calls to notify operations personnel for imminent maintenance procedures, faults
detected or alarms annunciated. Station monitoring can also be provided remotely whereby
service personnel can monitor instrumentation such are pressures, temperatures, flow, gas
concentration, etc. from remote locations.
Unmanned operation is allowed by the British Columbia Safety Authority (BCSA) for private
CNG fueling stations in BC. In BC, the regulations are similar for unmanned propane fueling
installations for private access and use only. Unmanned operation of CNG stations in Alberta
is also allowed (i.e. Encana Gas in Strathmore, AB). A new unmanned mother station is
currently being planned for Saskatchewan. The similarities between fueling of large vehicles
in time fill operations and the fueling of mobile storage units is functionally the same. Time fill
facilities are routinely unmanned. Stations currently in service include Waste Management in
Coquitlam, BC and School District No. 23 in Kelowna, BC.
4.1.5.2. Loading Authorization
The connection of the fueling nozzle and fill authorization process must be executed by an
operator. Upon arrival of the mobile storage at the mother station, the operator will connect
the filling nozzle and authorize the loading process. This may be done at a local HMI at the
fill post. Systems can be configured whereby the fill is authorized by the operator entering
identifying information which may include mobile storage number, operator identification,
customer identification, passwords or other info as deemed necessary. The system then
dispatches CNG to the mobile storage by starting up the compressor(s) (if not already
operating) and directing flow to the first hose authorized.
4.1.5.3. Temperature Compensated Filling
The loading system controls for bulk CNG filling must incorporate a temperature
compensated pressure fill system like those required by codes such as CSA B51 Part 3 and
CSA B108-99. Cylinders designed for road transport of gases are pressure rated by Service
Pressure. For example a DOT/TC 3AAX-2900 cylinder has a service pressure of 2900 psig
@ 21oC gas temperature. This pressure and temperature rating allows for an increase in
cylinder pressure if the ambient temperature causing a gas pressure rise. Transport Canada
(in conformance with US Code of Federal Regulation (CFR) Title 49) has determined that
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JENMAR CONCEPTS
131oF (55oC) is the maximum temperature normally encountered during the transportation
and storage of compressed gases. At this temperature a corresponding pressure rise is
allowable however temperatures above this limit are prohibited (see Figure 4.3).
TEMPERATURE COMPENSATED PRESSURE
DOT/CTC 3AAX-2900 CYLINDER
4400
Fill Pressure (psig)
3900
3400
2900
2400
1900
1400
-40
-30
-20
-10
10
20
30
40
50
60
Gas Temperature (oC)
Figure 4.3 Temperature Compensated Pressure DOT/TC 3AAX-2900 Gas

Cylinder
To address these requirements, the filling controls must account for changes in gas
temperature due to process changes and also ambient temperature. As the mobile storage is
being filled, gas is being discharged directly from the compressor. A high performance aftercooling system is not able to deliver discharge gas that is less than about 10oC above
ambient air temperature. In addition, as the gas enters the mobile storage cylinder, there is
an additional temperature rise due to the heat of compression (a phenomenon whereby the
gas entering the cylinder effectively acts as a piston to compress the gas already in the
cylinder causing a temperature rise). The combination of these two processes causes the
gas temperature inside the mobile storage to be well above ambient temperature possibly by
30o 40oC. Most temperature compensated fill systems correct only to ambient temperature.
More sophisticated controls account for the aforementioned excess after-cooled temperature
and thermodynamic affects by filling storage to higher pressures than would be calculated
simply based on an ambient temperature correction. Even with the more sophisticated
temperature compensation systems, under-filling remains an issue during warm temperature
days due to the maximum temperature limit of 55oC. Generally colder climates such as
Nova Scotia will provide some advantage in this regard.
Gas temperature rise during the filling process is a common industry challenge usually
causing systems to under-fill. Under-filling is an economic problem resulting in a smaller
delivered load size. This results in higher operations costs and marginally increased capital
costs as increased storage capacity may need to be provided to make up the difference.
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JENMAR CONCEPTS
4.1.5.4. Buffer Storage

A buffer storage cylinder or series of cylinders may be necessary at the mother station when
high capacity compressors are used. A buffer storage provides some volume for
compressors to discharge to during short periods between trailer filling to avoid a short
stop/start cycle or at the end of a trailer loading cycle. To reduce under-filling of the trailer
due to line pressure drop, some of the flow can be temporarily diverted to a buffer storage to
reduce the flow and therefore pressure drop to the loading mobile storage trailer.
4.2.
CNG Bulk Transport
4.2.1. Gas Cylinders And Certification

Cylinders used for road transport of gases must conform to Transport Canada (TC) and the
Transportation of Dangerous Goods (TDG) Act. Cylinders conforming to TDG must be
manufactured and approved in accordance with the following standards or processes.
CAN/CSA-B339 - This standard is prepared for use in conjunction with TDG

regulations. It sets the requirements for manufacturing, inspection, testing,
marking and requalification of conventional steel (Type 1) cylinders, spheres and
tubes used for transporting gases and other dangerous goods.
ISO 11119 (Parts 1, 2 and 3) This is an international standard that is in the

process of being adopted by Transport Canada into its TDG regulations. Currently,
applications for approval of gas cylinders in accordance with this standard still
require an application for a TDG Equivalency Certificate however the process is
well defined with little schedule impact. The standard applies to new technology
light weight composite type cylinders up to and including 450 liters water capacity
for the storage of compressed gases up to 650 bar. Compliant cylinders are
constructed of a metallic or non-metallic load or non-load sharing liner overwrapped with carbon, aramid or glass fibre (or mixtures) in a resin matrix. They
may also incorporate steel wire to provide circumferential reinforcement. These
cylinders are commonly categorized as follows:
o Type 2 metal liner with hoop wrapped composite
o Type 3 metal liner with fully wrapped composite
o Type 4 non-metallic liner with 100% composite
Equivalency Certificate (Permit) Transport Canada has provision for application

of new gas cylinder technologies and/or transportation processes not fitting the
above standards by allowing the proponent to prove an equivalent level of safety to
compliance with TDG regulations.
16
JENMAR CONCEPTS
Type 1 steel cylinders is the incumbent technology with a proven track record and
established certification processes. The disadvantage of steel cylinder based mobile storage
trailers is their high road weight. The road weight limit in Nova Scotia is 41,500 kg for a triaxle type trailer. This limit is quickly exceeded with steel cylinder type trailers. Type 2, 3 and
4 light weight cylinders offer a key advantage in substantially reduced road weight per unit
volume. This allows light weight cylinder trailers to offer the highest transport capacities.
4.2.2. Gas Cylinder Re-Qualification
Gas cylinders designed manufactured to CAN/CSA-B339 and ISO 11119 must undergo requalification testing periodically. A summary of these requirements is provided below. For
more detailed information, the relevant standards can be consulted.
Type 1 steel cylinders built to DOT/TC-3AAX designation
o 10 year inspection interval
o Includes a cylinder hydro test to 1.5 times service pressure
o Cylinder life is unlimited
Lincoln Composite Type 4 cylinders Titan Module
o built to ISO 11119-3
o have a special DOT Permit for US application.
o 5 year re-qualification interval
o Re-qualification testing includes internal and external visual inspection and
hydro test.
o 15 year maximum service life
o Are pursuing service life extension to 30 years not yet approved.
o Transport Canada Equivalency Certificate no yet approved.
o Re-qualification interval may reduce to 3 years in Canada, similar to Dynetek.
Dynetek Composite Type 3 cylinders Dynetek BT-30 module
o 5 year re-qualification interval in USA
o 3 year re-qualification interval period in Canada (application has been made to
Transport Canada for 5 year interval)
o 15 year maximum service life no provision for extension
o Re-qualification requires disassembly/reassembly of modules and testing of
each of 39 containers per module (visual and hydro test)
o Cost for re-qualification approximately $10,000 (cost provided by Dynetek)
17
JENMAR CONCEPTS
4.2.3. Gas Cylinder Suppliers

Several suppliers of gas storage cylinders exist in both Canada and the US. European and
other off shore suppliers are also active in the industry. Most manufacturers will supply
storage modules for mounting on transport trailers. Several cylinder module suppliers are
listed below.
Fiba Canning (Scarborough, ON)

Package a variety of sizes of Type 1 steel cylinder trailers

DOT/TC type with compliance to CSA B339
Able to supply a 13 tube DOT/TC-3AAX-2400+ cylinder tridem axel trailer with a
capacity of 235,760,900 scf @ 2640 psig
Also package lightweight Type 2 cylinders. TC approvals are pending.
Dynetek (Calgary, AB)

Build Type 3 cylinders with aluminum liners and carbon fiber wrap
The Dynetek Model V260 cylinder is the only cylinder model currently approved for
road transport with Transport Canada by way of a TDG Equivalency Certificate.
The V260 cylinder has a volume of 260 liters and is used as part of multiple
cylinder assemblies to make up the required transport volumes
The BT-30 mobile storage has a capacity of 300,600 scf at 250 barg (3600 psig)
storage pressure
Cost for the BT-30 storage trailer is approximately $615,000.
18
JENMAR CONCEPTS
Lincoln Composites (Lincoln, NE)

4.3.
Manufacture Type 4 tanks with non-metallic liner and composites

Titan module has a capacity of 362,200 scf @ 250 barg (3600 psig)
Cost for trailer packaged module approximately $485,000
De-Canting and Pressure Letdown Systems
A process flow diagram of a De-Canting System is shown in Appendix A. De-canting point(s)

and pressure letdown system skid are necessary to condition the variable pressure gas
coming off the mobile storage for introduction to the customers fuel supply.
4.3.1.
De-Canting Post
The customer site must have at least two off-loading bays to accommodate the mobile
storage trailers (MST). To guarantee a continuous supply of gas, prior to the depletion of one
MST, a full MST must already be in position and connected to the de-canting system. The
transition from empty MST to full MST must be without gas flow interruption. Each dispatch
bay must have at least one de-canting post. A de-canting post consists of a connection
nozzle, flexible hose, hand valve, check valve and possibly an automatic switching valve.
The transition from empty MST to full MST can be initiated upon reaching a low pressure
condition at the inlet of the pressure reduction system (PRS). A system that includes a
programmable logic controller (PLC), inlet pressure transmitter and switching valve may
initiate the transition automatically. Once the automatic valve on the fill post of the full MST
opens, the higher pressure on this line will back up the check valve on the fill post of the
empty MST and the flow from the empty MST will stop. Consequently, the flow from the full
MST will provide the entire gas supply to the PRS. The automatic valve on the empty fill post
19
JENMAR CONCEPTS
will close and the empty MST can be disconnected and prepared for dispatch from the
offloading bay.
4.3.2.
Pressure Reduction System (PRS)
PRS technology can be provided in various configurations however all equipment of this kind
has the same basic functionality. Common features include

4.3.2.1.
Two or more stages of pressure regulation

Gas pre-heating prior to pressure reduction
Gas Preheating System
As natural gas drops in pressure through a throttling process from pressure above 2400 psig
to less than 150 psig, the temperature of the gas plunges to very low temperatures.
Temperatures below freezing are not permitted

to eliminate liquid drop out, i.e. water vapor

to avoid freezing of liquid water
to protect downstream materials
to maintain normal gas densities for downstream process equipment
Normally the target downstream gas temperature is between 10oC and 30oC. To condition
the gas for these outlet temperatures, the gas must be pre-heated prior to regulation to
between 70oC and 80oC. There are several types of heating systems used in PRS
equipment including

direct fired tube heaters

liquid bath electric heaters
shell and tube heat exchangers with hot glycol fluid loops
Direct fired tube heaters are simple and reliable but expensive particularly at the small scale
typical of PRS equipment. Liquid bath heaters use expensive electric heat, with heating
loads in the high tens of kilowatts. Shell and tube heat exchangers with glycol fluid loops are
more complex but very economical from a capital and operations standpoint. The process
flow diagram of QN-0001-00 shows a PRS made up of a Heating and Controls Module
(HCM) and a Pressure Reduction Module (PRM). The HCM consists mainly of an
inexpensive packaged industrial boiler, liquid pump and auxiliary items. The PRM consist of
the gas section with shell tube heat exchanger, staged pressure regulation and gas meter.
The PRM and HCM are packaged on separate skids. The PRM has a hazardous area
classification of Class 1, Zone 2, Group D. The HCM is rated non-hazardous and must be
located at least 3 meters from the PRM in a non-hazardous area. The two skids are
connected with glycol/water heating piping and a small gas line that takes a feed of natural
gas from the PRM to the boiler for firing. The PRM provides a Measurement Canada certified
custody transfer meter on the outlet that measures net fuel delivered to the customer.
20
JENMAR CONCEPTS
4.3.2.2.
Staged Pressure Regulation
Most PRS have a primary regulation stage followed by a secondary regulation stage. The
primary regulators are rated for high pressure and are able to make a large pressure
reduction from 25 MPa (3600 psig) down to typically 2 4 MPa (290 580 psig). The outlet
pressure of the primary regulator need to be accurate but must be such that the outlet gas
pressure is in the range required by the secondary regulation stage. The secondary
regulation stage must provide an accurate and steady outlet gas pressure as required by the
customers downstream process. Secondary regulation often consists of one or more pilot
regulators that may be configured singularly or as a main and monitor pair. Downstream
over-pressure protection (i.e. relief valve, burst disk, etc.) must be provided at the outlet of
both primary and secondary regulation stages. These safety relieving devices are particularly
important given the high pressure upstream of the regulators should they fail. Careful
attention must be paid to design safety measures adequately to relieve pressure in the event
of regulator wide-open failures.
4.3.2.3.
Redundancy
In critical supply applications, redundancy on the most maintenance prone components of the
pressure reduction system is recommended. Pressure regulation should be dual trained with
isolation valves provided on each train for maintenance isolation. Dual coolant pumps and
diverter valves with maintenance isolation valves should also be provided on systems that
use a commercial boiler based heating system. Commercial boilers are generally very
reliable as long as regular maintenance intervals are observed.
4.3.3.
PRS System Performance Limitations
The entire piping system from the MST through to the PRS outlet must be designed to allow
the flow of gas from the MST to be sustained even at very low MST supply pressures. If the
MST can be drained to a very low pressure (i.e. less than 300 psig), the economics of the
process improve. A low MST pressure at empty allows more fuel gas to be transported per
delivery. Low pressure flow capacity is one of the key system design constraints. A well
designed system should be capable of transferring 90% of the volume capacity of the MST
with a 2640 psig service pressure. This percentage will increase with a MST with a higher
service pressure.
4.3.3.1. MST Piping System
The proper flow design of the MST piping system is often overlooked and can result in poor
overall flow performance and economics. The MST piping and manifold designs must be
carefully matched to the required flow specifications.
4.3.3.2. De-Canting Nozzle
The connection nozzle is one of the major flow limiting components of the de-canting post.
Typical CNG nozzles are generally too restrictive for customers requiring flows rates higher
21
JENMAR CONCEPTS
than about 200 Sm3/hr. There are only very few nozzle options that have Canadian
Registration Numbers (CRN) and the required flow capacity, one of them being the Hansen
8-HKP 1 Body Size hydraulic coupling (Cv = 10.3). This unit does not have a CSA listing
and is made of steel so is not rated for cold temperature (i.e. less than -20oC). For cold
temperature application, the stainless steel version should be used but the pressure rating
falls from 275 bar to 173 bar which is unacceptable. The Hansen 6-HKP body size
(Cv=7.2) in stainless steel only has a rating of 242 bar. This unit is acceptable with ratings to
200 bar however most new technology light weight cylinders are rated to 250 bar. The
availability of high flow coupling technologies with CRNs is an issue. Staubli Corporation
provides some very good high flow couplings suitable for the service but without CRNs.
Suppliers will need to be persuaded to make CRN applications or the authorities may need to
be convinced to provide a variance on these components.
4.3.3.3. De-Canting Post Breakaway Fitting
CNG Dispensers and Time Fill Posts require a breakaway device to protect the equipment
from inadvertent drive-away while the fuel nozzle is connected. This is a requirement of CSA
B108-99. Similarly a de-canting post must also have provision for a drive-away event or
other provision to mitigate the risk. Use of a conventional breakaway device is not feasible
for most de-canting post applications due to the restrictiveness of the component. The OPW
ILB-1 has a CRN for most provinces but is too restrictive (i.e. Cv=1.17). The larger OPW
ILB-5 has no CRN but is still too restrictive for most applications (i.e. Cv = 3.6). Other
breakaway products are available but without CRNs or adequate flow capacity. An equivalent
safety approach must be adopted in lieu of this. One solution is to provide a brake interlock
device whereby the wheel brake system engages when the fuel nozzle receptacle is
engaged. For example, when a cover over the fueling receptacle is opened, the wheel break
automatically engages on the mobile storage. To release the brakes, the nozzle must be
removed from the receptacle and cover replaced.
4.3.3.4. De-Canting Hose
De-canting hoses must be rated for high pressure. A large I.D. CNG hose is required for high
flow de-canting operations. The largest I.D. hose available is a 1 I.D. hose made by Parker.
These hoses offer reasonable flow capacity but are cumbersome to handle due to their
stiffness.
4.3.3.5. Multiple De-Canting Posts
Due to the general flow restrictiveness of the De-Canting Post and the impracticality of
upsizing the flow components, it may be necessary to provide more than one post per MST
thereby reducing the flow per post. It may also not be practical to upsize the field piping
between the post and the PRM above about 1 NPS size, leading to parallel gas piping runs to
the PRM to minimize pressure drop.
22
JENMAR CONCEPTS
4.3.3.6. Primary Regulators

Primary regulators require large flow coefficients to assure adequate flow performance at low
pressure. Once pressures drop in the MST and the pressure drops below the set pressure of
the primary regulator in the PRS, regulators no longer regulate but operate in a wide open
condition. The availability of high pressure, high-flow coefficient regulators is very limited and
is therefore expensive and may not have the necessary C.R.N. approvals. This will require
users to convince manufacturers to obtain the required approvals or apply for a variance on
their use.
4.3.4.
Codes Standards And Approvals
4.3.4.1. Mother Stations

The design of CNG mother stations is not explicitly included in the scope (Section 1) of CSA
B108-99 Natural Gas Fuelling Stations Installation Code. Clause 8 however addresses
storage vessel dispatch and receiving briefly. In lieu of a specific design code governing
mother stations, CSA B108-99 is expected to be the code of design for mother stations
adopted by authorities having jurisdiction in Canada.
The design of mother stations is also not strictly included in the scope of CSA B51 Part 3
Compressor Natural Gas and Hydrogen Refueling Station Pressure Piping Systems and
Ground Storage Vessels, however it is expected that the authorities having jurisdiction will
require compliance with this code section also.
4.3.4.2. De-Canting and Pressure Reduction Systems
The design standards to be applied to de-canting and PRS equipment is less clear. Best
practices would dictate that the most stringent of the following codes and standards be
applied where applicable.

CSA Z662-11 Oil and Gas Pipeline Systems Applicable to the design or
pressure regulation systems and over-pressure protection.
CSA B108-99 Natural Gas Fuelling Stations Installation Code Applicable to the
design of receiving and dispatch facilities, high pressure storage crash protection,
de-canting posts and hazardous area locations and general siting set-backs.
CSA B51 Part 1 Design of pressure vessels, heat exchangers, fittings and
pressure piping systems.
CSA B149.1-10 Natural Gas and Propane Installation Code Applicable to the
design of field pressure piping systems from the outlet flange of the custody
transfer meter to the customers appliances.
23
JENMAR CONCEPTS
5. PHASE 1 SINGLE USER CASE STUDY
5.1.
Single User Study Case Definition
For the purposes of the study and as required by the QUEST RFP, a single user off-grid
customer is defined as a base line case in the following table.
Table 5.1 Single User Profile
Parameter
Annual fuel consumption
Average consumption
Peak consumption
Distance from mother station
Total round trip distance
Average travel speed
Gas supply pressure at mother station
Value
250,000
685
1000
50
100
60
800
Unit
GJ/yr
GJ/day
GJ/day
km
km
Km/hr
psig
A capital and operating budget will be generated to accommodate this single user to define a
base line delivered fuel cost. A sensitivity analysis will follow in Section 6 to understand the
changes in delivered fuel cost based on changes in load and delivery distance.
5.2.
Base Line Operations Assumptions
The following assumptions are made that impact both process and installation design.

The customer must have a continuous and un-interrupted fuel supply delivered to
the site.
The mother station capacity is designed and optimized for the single customer.
The mother station has 100% redundant compression capacity such that with the
loss of one compressor due to malfunction or maintenance interval the station
remains in service and capable of meeting the full demand.
Only one compressor operates at any one time to reduce demand charges.
The station is designed for unattended operation with twice weekly inspections and
service as required (See Section 4.1.4.1).
The transport operators will be trained to execute filling operations, safety
procedures and emergency response.
Two trailer loading positions will be provided at both the mother station and decanting stations so that there can be seamless transitions.
The operator will deliver a full trailer and connect it to the de-canting system at the
customer site. The newly delivered trailer will be unhitched and the operator will
24
JENMAR CONCEPTS

5.3.
transport the empty trailer back to the mother station for fueling. In this way, the
operator will have minimum idle time at the de-canting station.
At the mother station, the empty trailer will be positioned for filling and connected to
the fill post. After connection, operator is idle for a determined number of hours
while the trailer is being filled and may proceed with other work or go off shift as
the schedule dictates. The operations process assumes a minimum of idle time for
operators. When the trailer is full at the mother station, it may sit idle for a time
before pick-up by the operator. The operator is assumed to have good timing for
load pick-up in order to reach the customer site in time before the incumbent trailer
is depleted.
Average travel speed for road transport is 60 km/hr.
Mother Station System Design
Figure 5.1 provides a schematic of the major equipment components of the mother station
facility. The priority/ESD/fill control panel prioritizes flow to one of two fueling nozzles. The
compressor boosts line pressure to a buffer storage or directly to the trailers for loading. The
size of the buffer storage is small and is mainly needed to provide some system stability
during transitions from the loading of one trailer to the next. The filling of trailers will be on a
first in / first out basis whereby the first trailer to connect will receive a complete load before
gas is directed to a 2nd connected trailer. This allows for a seamless transition whereby one
trailer is being loaded while a full trailer is being moved out and an empty unit moved into
loading position. The empty unit is then available on standby ready to begin loading after the
1st trailer unit completes the loading operation.
Figure 5.1 Mother Station Concept Flow Diagram

25
JENMAR CONCEPTS
A supply gas meter provides information on the total gas delivered from the main gas supply
pipeline to the mother station compressors. The Fill Control Panel includes a coriolis mass
flow meter to record the fueling delivery transactions to each mobile storage trailer. In this
way, fuel delivered to each trailer and be tracked.
Since the gas supply pressure is expected to be 800 psig (5500 kPa) or even higher there is
an opportunity to partially fill the storage trailers with line gas directly thereby bypassing the
need for compression at the start of the loading process. The trailers are expected to arrive
with their cylinders having been depleted at the customer site to approximately 150 200
psig. It may be possible to fill the storage trailers to about 725 psig if piping is adequately
sized. This will provide some savings in operating costs associated with motive energy and
maintenance. Cycle time may also be reduced.
The equipment selection for the mother station is based on maintaining a high duty cycle for
the compression equipment. This philosophy minimizes the electrical demand charges and
maximizes the gas throughput per unit of capital expenditure. High duty cycle also minimizes
operations cost, particularly maintenance and service.
Table 5.2 Mother Station Performance Summary
MOTHER STATION PERFORMANCE
station load
station volume
supply gas pressure
no. of compressors available
compressor flow per unit
total compressor flow
no. of compressors operating
trailer filling rate
fueling time per mobile storage
compressor operating time per day
compressor operating hours per year
compressor duty cycle
redundancy
Value
250000
629995
800
2
703
1406
1
703
6.7
14.9
5437
65%
100%
Unit
GJ HHV/yr
scf
psig
scfm
scfm
scfm
hours
hours
hours
Note that filling time for one mobile storage trailer is 6.7 hours in the base case at an inflow of
703 scfm. Filling durations can be reduced substantially by increasing inflow with increased
compression capacity if needed. A practical limit may be 2500 3000 scfm. At 2500 scfm
the fill time would be reduced to less than 2 hours. Above 3000 scfm, metering becomes very
expensive. In addition deleterious effects including excessive pressure drop and heat of
compression induced temperature rise in the gas cylinders increase will flow to cause underfilling issues.
26
JENMAR CONCEPTS
5.4.
Mother Station Equipment Selection
An equipment list for the mother station site is provided in the following table.
Table 5.3 Mother Station Equipment List
Item
1
3
4
5
Equipment
CNG Compressor Electric Driven Option 1
Suction pressure: 800 psig (5500 kPa)
Discharge pressure: 3600 psig
Stages: 2
Flow Capacity: 702 scfm @ 800 psig suction
Speed: 750 RPM
Main drive motor: 100 HP
Remote non-hazardous control panel
CNG Compressor CAT 3306NA Gas Engine Driven Option 2
Suction pressure: 800 psig (5500 kPa)
Discharge pressure: 3600 psig
Stages: 2
Flow Capacity: 878 scfm @ 800 psig (5500 kPa) suction
Speed: 900 RPM
Main drive motor: 125 BHP
Remote non-hazardous control panel
Compressor block heater
Gas Dryer
Single tower with off-line regeneration
Walk-in Weather Enclosure W/ Electrical Controls Room
- Class 600 isolation ball valve & flex hose
- Electric heating with thermostat
- Controls room to include main disconnect, distribution,
individual panel disconnects and a transfer switch (for
back-up power)
- Control panel mounted in controls room and wired to
equipment in enclosure.
- Enclosure houses both gas dryer and two compressors
2 Hose Fill Control/Priority/ESD Panel
- instrument fittings and tube fittings
- For flow to 1500 scfm
- line sizes for main flow lines throughout
- authorization valves (2 units)
- Micromotion meters
- Pressure transmitters
- Relief valve
- Ambient temperature transmitter
Fill Post Double Hose
Qty
2
2
1
1
27
JENMAR CONCEPTS
- High flow fill post for flow up to 1000 scfm

- I.D. hoses
- tubing
- Heavy duty in-line breakaway OPW ILB-5
- Heavy duty fueling nozzle OPW CT5000S
- ball valve
- Pressure gauge
- Vent valve & Hose retractor
SCADA System
- HMI Display suitable for outdoor location
- Fill authorization and data logging based on operator I.D.
and password.
- Tracking of mobile transport I.D., date/time of fill, product
transferred, final fill pressure
- Data download to PC
Buffer Storage Assembly
- Single ASME high pressure storage vessel, 1000 liter
water volume, MAWP=5500 psig, ASME VIII Appendix 22
Qty 1
- Relief valve
- Isolation valve
- Vessel bulkheads
28
JENMAR CONCEPTS
5.5.
Electrical Load
The mother station site will require an electrical service to be installed. The size of the
service is based on the equipment selection and estimated as per Table 5.3.
Table 5.3 Electrical Load Calculation Electric Drive
CNG EQUIPMENT ELECTRICAL LOAD LIST - 100 HP ELECTRIC DRIVE
Item
1
2
3
4
5
6
7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
28
21
22
23
24
25
26
Load Description
Voltage
IMW50/100 Compressor No. 1
Main Drive Motor
575
Cooling Fan Motor No. 1A
575
Cooling Fan Motor No. 1B
575
Compressor Block Heater
120
Compressor Controls
120
Peak
Station
Circuit Amp
Power Mtr Shaft
Max Rating Amps Efficiency Factor Pwr (hp) Power (kW) Power(kVA) Operation Idle Load
98.3
2.1
2.1
2.5
16.7
92%
88%
88%
100%
100%
0.9
0.9
0.9
1.0
1.0
100
2
2
81.09
1.70
1.70
0.30
2.00
90.10
1.88
1.88
0.30
2.00
YES
YES
YES
YES
YES
NO
NO
NO
YES
YES
IMW50/100 Compressor No. 2

Main Drive Motor
575
Cooling Fan Motor No. 2A
575
Cooling Fan Motor No. 2B
575
Compressor Block Heater
120
Compressor Controls
120
98.3
2.1
2.1
2.5
16.7
92%
88%
88%
100%
100%
0.9
0.9
0.9
1.0
1.0
100
2
2
81.09
1.70
1.70
0.30
2.00
90.10
1.88
1.88
0.30
2.00
YES
YES
YES
YES
YES
NO
NO
NO
YES
YES
Gas
Gas
Gas
Gas
575
575
575
23.4
23.4
15.1
88%
88%
100%
0.9
0.9
1.0
2.0
0.25
1.70
0.21
15.00
1.88
0.24
15.00
NO
NO
NO
NO
NO
NO
Other 575V Loads

Enclosure Heater
575
5.0
100%
1.0
5.00
5.00
YES
YES
Yard Lighting
Yard Light No. 1
Yard Light No. 2
377
377
0.8
0.8
100%
100%
1.0
1.0
0.50
0.50
0.50
0.50
YES
YES
YES
YES
Other 120V Loads

electrical room heater
Enclosure Lighting
120V Outlet Plug/Light #1
Skada System
Spare 1
Spare 2
120
120
120
120
120
120
120
4.8
5
0
0
5
0
0
100%
100%
100%
100%
100%
100%
100%
1.0
1.0
1.0
1.0
1.0
1.0
1.0
YES
YES
NO
NO
YES
NO
NO
kVA
V
A
kVA
kVA
YES
YES
NO
NO
YES
NO
NO
Dryer
Dryer - blower motor
Dryer - fan motor
Dryer - Heater
15
15
15
15
15
15
1.00
0.60
0.00
0.00
0.60
0.00
0.00
Total
198.66
Service Voltage
Service Amperage
Peak Operating Load
Station Idle Load
1.00
0.60
0.00
0.00
0.60
0.00
0.00
217.65
575
218.5
200.5
12.8
A peak load of 200.5 kVA is projected. This load includes non-CNG related loads including
yard lighting, and provision for some additional small loads. It is expected that a 300
kVA/600V service is required.
29
JENMAR CONCEPTS
As a comparison, the electrical load for a gas engine driven compressor is provided in Table
5.2.
Table 5.4 Electrical Load Calculation Gas Engine Drive
CNG EQUIPMENT ELECTRICAL LOAD LIST - CAT 3306NA GAS ENGINE DRIVE
Item
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Circuit Amp
Power Mtr Shaft
Peak
Station
Load Description
Voltage Max Rating Amps Efficiency Factor Pwr (hp) Power (kW) Power(kVA) Operation Idle Load
IMW50 Compressor/CAT3306NA
Cooling Fan Motor No. 1
575
2.1
88%
0.9
2
1.70
1.88
YES
NO
Cooling Fan Motor No. 2
575
2.1
88%
0.9
2
1.70
1.88
YES
NO
Engine Radiator Fan
575
20.6
90%
0.9
20
16.58
18.42
YES
NO
Compressor Block Heater No. 1
120
2.5
100%
1.0
0.30
0.30
YES
YES
Compressor Controls
120
16.7
100%
1.0
2.00
2.00
YES
YES
Gas
Gas
Gas
Gas
Dryer
Dryer - blower motor
Dryer - fan motor
Dryer - Heater
575
575
575
23.4
23.4
15.1
88%
88%
100%
0.9
0.9
1.0
Other 575V Loads

Enclosure Heater
575
5.0
100%
Yard Lighting
Yard Light No. 1
Yard Light No. 2
377
377
0.8
0.8
Other 120V Loads

Enclosure Lighting
Skada System
Spare 1
Spare 2
120
120
120
120
120
120
5
0
0
5
0
0
15
15
15
15
15
15
2.0
0.25
1.70
0.21
15.00
1.88
0.24
15.00
NO
NO
NO
NO
NO
NO
1.0
5.00
5.00
YES
YES
100%
100%
1.0
1.0
0.50
0.50
0.50
0.50
YES
YES
YES
YES
100%
100%
100%
100%
100%
100%
1.0
1.0
1.0
1.0
1.0
1.0
YES
NO
NO
YES
NO
NO
kVA
V
A
kVA
kVA
YES
NO
NO
YES
NO
NO
0.60
0.00
0.00
0.60
0.00
0.00
46.38
Total
Service Voltage
Service Amperage
Peak Operating Load
Station Idle Load
0.60
0.00
0.00
0.60
0.00
0.00
48.81
575
49.0
31.7
9.5
A peak load of 31.7 kVA is projected. This load includes non-CNG related loads including
yard lighting, and provision for some additional small loads. A 50 kVA/600V service is
required.
30
JENMAR CONCEPTS
5.6. Site Design Concepts

5.6.1.
Mother Station
A concept drawing of the mother station site is shown in Appendix B. The site provides an
entrance and exit with two pull through trailer loading positions. A double hose fill post
provides two hoses, one for each trailer connection.
The yard has security fencing and locked rolling gates to limit entry to authorized personnel
only.
The trailer loading positions are protected by concrete barriers to mitigate the risk of collision
in accordance with code (CSA B108-99).
The compressor enclosure includes an on-skid electrical controls room that is unclassified
and contains electrical distribution and control panel equipment. The electrical room is
sealed separate from the equipment room containing the natural gas drying and compressor
equipment. All wiring between the electrical room and equipment room is pre-wired at the
factory and tested. Electrical site work is limited to a main power supply connection.
The gas supply is piped from a gas meter and regulator (if required) to the inlet flange of the
compressor skid. A buffer storage vessel is mounted outside of the enclosure. High
pressure tubing lines and an electrical conduit run between the skid and the fill post.
5.6.2.
De-Canting Station Site
A concept drawing of the de-canting station site is shown in Appendix B. The site provides
an entrance and exit with two pull through trailer loading positions similar to the mother
station. Two de-canting posts, one at each off-loading position are provided.
The yard has a security fence and locked rolling gates to limit entry to authorized personnel
only. This feature is not required for de-canting facilities located in a secured customer
facility.
The trailer off-loading positions are protected by concrete barriers to mitigate the risk of
collision in accordance with code (CSA B108-99).
The pressure reduction system is located between the off-loading positions to minimize high
pressure field piping runs. The HCM requires a power supply connection (5 kVA/220V). The
PRM requires high pressure gas connections to the de-canting posts. The gas exiting from
the PRM must be piped and connected to the customers gas supply system. Some coolant
piping and electrical wiring connections are required between the HCM and PRM. The HCM
must be offset from the PRM by 3 meters to avoid the zone 2 hazardous area surrounding
the PRM. The HCM is covered by a light shelter or roof.
31
JENMAR CONCEPTS
5.7.
Mobile Storage Transport Equipment
The case study assumes the use of a 14 tube mobile transport trailer based on use of
Transport Canada approved high pressure cylinders. For the purpose of this study, a 14
Tube Tridem Jumbo trailer is selected with the following specifications.
Table 5.5 Mobile Storage Transport Specifications
Parameter
Model
Supplier
No. of cylinders
Cylinder specification
Service pressure
Water volume (each)
Total capacity
Trailer Weight (empty)
Loaded Weight (full)
Value
14 Tube Quad Axle Jumbo
Fiba Canning
14
DOT/TC 3AA-2750
2750
2468
8520
300,900
41,000
47,152
Unit
psig
Sm3
Scf
kg
kg
Figure 5.2 Self-steer Quad-axle semi-trailer

Of the available mobile storage options with Transport Canada approvals, this equipment
was the most economical. Based on suppliers quotes, the total budget cost for the trailer
assembly is $400,000 (not including the tractor). Fiba Technologies (a US company) has
supplied this type of trailer for the Cavendish Farms (PEI) project. It is presumed that J.D.
Irving, owner of Cavendish Farms was able to obtain an exemption to allow transport of CNG
using quad-axle trailers. This precedent may benefit the case in study.
32
JENMAR CONCEPTS
5.8. Operations Summary

To estimate transport operating costs, a time study was conducted to map the operations
process. The results of the time study are shown in the following table.
Table 5.5 Operations Time Study
OPERATIONS TIME STUDY
Trailer Use Time
connect nozzle/unhitch empty trailer for filling (mother)
filling duration
hitch/disconnect nozzle from full trailer (mother)
travel time to client site
connect nozzle/unhitch full trailer (de-canting)
de-canting time
hitch/disconnect nozzle from empty trailer (de-canting)
travel to mother station
extra margin time
total de-canting time
total transport time
total minimum cycle time
actual cycle time
trailer idle time
minimum no. of trailers required
Labor Time
connect nozzle/unhitch empty trailer for filling (mother)
hitch/disconnect nozzle from full trailer (mother)
travel time to client site
connect nozzle/unhitch full trailer (de-canting)
hitch/disconnect nozzle from empty trailer (de-canting)
travel to mother station
extra margin time
labor downtime
total labor useful labor time (per cycle)
labor half cycle time
Parameter
Unit
15
401
15
50
15
645
15
50
80
10.8
10.7
21.4
22.6
1.1
2
min
min
min
min
min
min
min
min
min
hours
hours
hours
hours
hours
15
15
50
15
15
50
80
7.8
4.0
11.8
min
min
min
min
min
min
min
hours
hours
hours
The operations study highlights the following important points.

2 mobile storage trailers are required for this customer.

The cycle time for each trailer (filling to de-canting and back to filling) is 22.6 hours.
Of this time, the trailer is sitting idle for only 1.1 hours (i.e. no activity).
The total labor input per trailer load cycle is only 4.0 hours. This includes 1 hour
and 20 minutes of contingency time in the event of an accident, traffic jam or other
travel issues. In addition, an additional 1.1 hours of trailer idle time remains to
allow for variability in consumption.
33
JENMAR CONCEPTS

5.9.
A labor shift starts every 11.8 hours and extends for 4.0 hours to make a delivery
and take an empty trailer back to the mother station for filling.
If customer demand were to increase and the trailer idle time decreases to zero,
this will trigger the required addition of one more mobile transport trailer.
Project Capital Cost Breakdown
A detailed breakdown of the capital costs for both the mother and de-canting stations is
estimated in Appendix C. The capital costs are based on the site layouts of Appendix B and
the listed assumptions. For the mother station, costs are particularly sensitive to the location
of the utilities, namely the gas supply and electrical service. It is for this reason that the
compressors are located close to the road where gas and electricity are assumed to be
available. All capital cost estimates are based on year 2012.
Jenmar Concepts opinion of total probable capital cost for an electric driven and gas engine
driven compressor mother stations is estimated at $1,423,000 and $1,536,000 respectively.
These totals include a 10% contingency. Cost breakdown by major category is shown in the
following figures.
Figure 5.3 Mother Station Cost Breakdown - Electric Drive
34
JENMAR CONCEPTS
Figure 5.4 Mother Station Cost Breakdown - Gas Engine Drive
Jenmar Concepts opinion of total capital cost for the de-canting station is estimated to be
$237,300.00 with breakdown as shown.
Figure 5.5 De-Canting Station Cost Breakdown

35
JENMAR CONCEPTS
5.10.
Operations Cost Breakdown
The operations costs for the mother station and de-canting stations are comprised of
o
o
o
5.10.1.
natural gas consumption

electrical energy consumption
maintenance and service
Fuel Gas Costs
Some of the natural gas delivered to the station by gas pipeline is consumed in providing fuel
for a gas engine driven compressor (if applicable) and for heating at the de-canting station.
Some historical data from Heritage Gas for the Gas Recovery Rate (CGRR) is provided
below.
Table 5.6 Historical Natural Gas Fuel Cost Data
Month
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
GCRR
85
7.35
6.23
3.44
3.83
5.27
5.15
4.97
4.11
4.02
4.03
5.47
Month
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
GCRR
8.08
7.27
4.54
4.54
4.29
4.35
4.71
4.46
4.1
4.7
5.32
6.37
Month
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
GCRR
5.61
For the purposes of this study an average fuel gas cost of $5.50 per GJ will be assumed. This
is intended to represent the cost of the commodity but excludes the delivery charges for
receiving natural gas from the local distribution company, or the capital costs of developing a
Custody Transfer Station to receive natural gas directly from the transmission pipeline.
36
JENMAR CONCEPTS
5.10.2.
Maintenance Costs
Maintenance and service cost estimates for both electric motor driven and gas engine driven
mother stations are provided in the following table. A typical maintenance and service
contract cost in the industry is $1.00/GJ. This figure is typically applied to CNG stations with
suction pressures below 100 psig requiring the use of 4 stage compressors and lower duty
cycles. Given the exceptionally high gas suction pressure and high duty cycle of the mother
station of the case study, substantially lower maintenance and service costs are expected.
There is little available maintenance/service data for the mother station envisioned in this
study. The following figures were derived based on a combination of rule of thumb,
experience and scaling calculations. The following figures should be considered
representative rather than definitive.
Table 5.6 Mother Station Maintenance and Service Costs
MOTHER STATION
Maintenance Cost
compressor type
fixed yearly cost for maintenance
incremental maintenance cost per unit
incremental maintenance cost per unit
monthly maintenance cost
yearly maintenance cost
maintenance cost per unit compressed
maintenance cost per unit compressed
Parameter
$
$
$
$
$
$
$
Electric
20,000.00
0.016
0.416
10,324.68
123,896.10
0.496
0.017
Parameter
$
$
$
$
$
$
$
Gas Engine
24,000.00
0.020
0.519
12,822.51
153,870.13
0.615
0.021
Unit
per gle
per GJ HHV
per GJ HHV
per gle
Gas engine driven installations require greater maintenance than electric driven installations.
Maintenance cost for the de-canting station is very low and is estimated at $0.030 per GJ.
This is based on a weekly service call and some spare parts (refer to Appendix D for more
detail).
Maintenance on mobile storage trailers is consists of running costs and fixed costs related to
cylinder re-certification. Trucking industry rules of thumb suggest that trailer maintenance
costs be in the $0.012 to $0.030 per km range depending on use, geography and climate.
Using this guideline we can predict annual cost for the Phase 1 case to be:
Distance per trip 100 kms
Trips per year 390 (22.6 hour cycle time, 365 days per year)
Total kilometers 39,000
Cost per year (@ $0.03/km) = $1,179
37
JENMAR CONCEPTS
This calculation does not include the cost of maintaining the cylinders which is mainly due to
costs for re-qualification. Re-qualification costs vary depending on the type of cylinders used.
For steel cylinders an allowance of $800 per annum or $8000 per 10 year cycle is provided.
A summary of maintenance costs is provided below.
Table 5.7 Maintenance Cost Summary
electric gas engine unit
mother station
$ 0.496 $ 0.615 per GJ
mobile storage
$ 0.016 $ 0.016 per GJ
de-canting station $ 0.030 $ 0.030 per GJ
Total
$ 0.542 $ 0.662 per GJ
5.10.3.
Electric Power and Fuel Gas Costs
For the mother and de-canting stations, the operating costs consist of electric power and fuel
gas consumption (if gas engine driven compressors are used). For electric power, the Small
Industrial rate from Nova Scotia Power was applied. Operating costs are shown in the table
below.
Table 5.8 Energy Cost Summary
electric gas engine
unit
Mother Station
electricity
$ 0.309 $ 0.105 per GJ
fuel gas
$
$ 0.114 per GJ
Total
$ 0.309 $ 0.219 per GJ
De-Canting Station
electricity
$ 0.011
per GJ
fuel gas
$ 0.030
per GJ
Total
per GJ
$ 0.041
5.10.4.
Mobile Storage Transport Operations
The study assumes that fuel deliveries will be contracted to a company similar to the Trimac
Group. The fuel provider will own the mobile storage trailers but the transport company will
supply and operate its own fleet of tractors. On this basis haulage rates were requested from
various companies. The haulage rate is broken down into a

Cost Per Km Travelled - $3.40 per km

Non-Rolling Rate $80.55 per hour (For time spent at the mother or de-canting
station making connections/disconnections and possibly some waiting time.)
38
JENMAR CONCEPTS
On this basis operating costs are estimated for each delivery at $527.95 per delivery or $1.73
per GJ, based on the study scenario.
5.11.
Capital Cost Recovery
To account for the cost of capital a cost recovery model is used to calculate a present value
of capital funds paid over a defined number of annuities and interest rate. For this study, the
number of annuities used and the interest rate are 20 years and 6% respectively. This
analysis makes no assumptions with respect to the appropriate capital structure for the
facilities owner, and therefore does not include an appropriate return on equity. Nor does it
include profit. On this basis a yearly cost of capital is estimated and amortized by the number
of gigajoules of fuel delivered. The results are shown below.
Table 5.9 Capital Cost Recovery Summary
Parameter
cost of money
number of annuities (years to recover)
capital cost recovery factor
MOBILE STORAGE EQUIPMENT
capital cost per mobile storage
number of trailers required
capital cost for all trailers
annual cost
cost per fuel unit
MOTHER STATIONS
capital cost for station
annual cost
cost per fuel unit
DE-CANTING STATION
capital cost for station
annual cost
cost per fuel unit
Electric Driven
Gas Engine Driven
6.0%
20
0.087
6.0%
20
0.087
Unit
$
$
$
400,000.00 $
2
840,000.00 $
73,235.03 $
0.29 $
400,000.00
2
840,000.00
73,235.03
0.29 per GJ HHV
$
$
$
1,422,667.40 $
124,034.63 $
0.50 $
1,535,967.40
133,912.64
0.54 per GJ HHV
$
$
$
237,274.40 $
20,686.66 $
0.08 $
237,274.40
20,686.66
0.08 per GJ HHV
39
JENMAR CONCEPTS
5.12.
Delivered Fuel Cost
The following table presents the all-in cost of fuel delivered to the customer as defined in the
base case. Note that the fuel costs derived from the study do not include administration
costs and profit.
Table 5.10 Total Fuel Delivery Cost
Cost Of Fuel Gas

Sub-Total Operating Cost
mother station
CNG transport
de-canting
Sub-Total Capital Cost
mother station
CNG transport
de-canting
Total Delivered Cost
5.13.
$
$
$
$
$
$
$
$
$
$
Electric Drive
5.500
2.609
0.804
1.732
0.072
0.872
0.496
0.293
0.083
8.98
Gas Engine
$
$
$
$
$
$
$
$
$
$
Drive
5.500
2.639
0.835
1.732
0.073
0.911
0.536
0.293
0.083
9.05
Units
per GJ
per GJ
per GJ
per GJ
per GJ
per GJ
per GJ
per GJ
per GJ
per GJ
Competitive Fuel Comparison
The delivery of natural gas to off-grid locations provides a competitive alternative to currently
available energy sources. For comparative purposes a survey was conducted of a number of
energy suppliers throughout Nova Scotia to gather information on the costs of those
alternative fuels based on supply of 250,000 GJ per year to a single location. Pricing was
obtained for delivery to Yarmouth, Kentville, and Halifax to determine distance variations.
Nova Scotia industries not currently served by natural gas supply lines have access to a
variety of energy sources, the most common being electricity, propane and fuel oils such as
home heating oil (fuel oil #2). Other light and heavy oils (fuel oils #1-6) are also options,
albeit less common and in some cases restricted by current emission control legislation.
Comparative pricing is shown for electricity, propane, home heating oil #2, and heavy oil #6.
5.13.1.
Heating Oil (Fuel oil #2)
Many industries and homes in Nova Scotia rely on heating oil for heating and processing..
According to a 2007 Statistics Canada report, 50% of homes in Nova Scotia turn to oil for
heating. Heating oil delivery is common and available from a number of distributors in
volumes up to 34,000 litres, or 1312 GJ per trip.
Yarmouth, NS
Kentville, NS
$/ltr (ex tax)
$/Gj (ex tax)
0.965
0.940
25.005
24.344
40
JENMAR CONCEPTS
Halifax, NS
0.943
24.416
5.13.2. Propane
Propane is in wider use in Nova Scotia than in the rest of Canada, although it contributes a
much smaller percentage of fuel for heating and processing than does heating oil. The 2007
StatsCan survey indicates that the national use of propane fell into the other category (fuels
other than electricity, natural gas, oil and liquid fuels, and wood) and comprised only 1.2% of
all energy consumed nationally. The Canadian Propane Association indicates that propane
delivers 2.25% of all energy consumed in Nova Scotia. The Nova Scotia provincial
government estimates over 60,000 permanent propane installations in the province, with total
annual provincial consumption of 135,000 cubic meters (135 million litres), or 3% of the
national total. The only propane production in Nova Scotia is at the Imperial Oil Limited
refinery in Dartmouth and the Sable fractionation plant in Point Tupper.
Propane is available from a number of suppliers at service stations or by tanker delivery.
Tankers are capable of delivering up to 34,000 litres, or approximately 867 GJ per trip.
5.13.3.
$/ltr (ex tax)
$/Gj (ex tax)
Yarmouth, NS
0.457
17.906
Kentville, NS
0.445
17.449
Halifax, NS
0.440
17.253
Electricity
Approximately 25% of all homes in Nova Scotia use electricity as the primary energy source
for home heat. Virtually all areas of the province are served by electrical infrastructure, and
all businesses will use electricity in varying degrees in the course of business. Current small
industrial tariffs provided by NS Power provide the following costs for comparison.
Representative
5.13.4.
$/KWh (ex tax)
$/Gj (ex tax)
0.136
37.78
Heavy Oil (Fuel Oil #6, or Bunker C)
Bunker C is a high viscosity residual petroleum compound; (also called bunker, #6 oil, heavy
oil etc.) produced from the refining of crude oil. It is used as a fuel for some ships and large
boilers but is unsuitable for smaller plants due to the requirement for preheating. Bunker C
oil is dark colored, sticky, thick and heavy. It is not as volatile as other petroleum products like
gasoline. Fuel Oil #6 (41.73 GJ/m3) has a higher energy content than Fuel Oil #2 (Home
Heating Oil)(38.68 GJ/m3) and is generally priced lower per litre than other heating oils.
Given its high viscosity it is somewhat difficult to deal with. Sulfur content is difficult to control
batch to batch and regulations on its use will likely tighten in the near term. In extreme cases
41
JENMAR CONCEPTS
sulfur content can rise to as much as 3% by weight. Bunker C releases sulfur dioxide on
combustion.
Current rack price for #6 oil is at $0.70-$0.73 per liter yielding delivered costs in the range of
$19.00 - $20.00 / GJ.
5.13.5.
Justification
Pricing for each of the above fuels was obtained from a selection of suppliers within Nova
Scotia and considered supply of volumes adequate to meet the energy consumption
requirements of the case study. Prices include delivery to the three points indicated.
The approximate volumes of each fuel required to provide 250,000 GJ per year are:

Fuel Oil #2 6.5 million litres

Propane 10 million litres
Electricity 69.5 million KwH
Heavy Oil #6 6 million litres
The prices given are considered accurate based on information sourced. Some discount
may be achieved through negotiation but it is unlikely that double-digit percentage
improvements could be achieved. Larger volumes would yield additional discounts. Phase 2
will consider larger energy requirements although the usage will be spread over multiple
users, and so a large volume discount will likely not be applicable.
6. KEY VARIABLE SENSITIVITY ANALYSIS
The key variables impacting the cost of delivered fuel are expected to be transport distance,
customer load and trailer size/selection. The electric driven mother station is used in the
analysis only.
6.1.
Impact of Transport Distance On Fuel Cost
To understand the impact of transport distance the base case is used with the exception of a
variable transport distance ranging from 25 to 150 kilometers (one way). The same
equipment is used for all cases and the annual load is 250,000 GJ. The results are shown
below.
42
JENMAR CONCEPTS
Table 6.1 Fuel Cost Vs Transport Distance

Distance
(kms)
Fuel Cost
(per GJ)
25
50
75
100
125
150
200
250
$
$
$
$
$
$
$
$
No. of Trailers
8.43
8.98
9.68
10.23
10.79
11.34
12.44
13.55
2
2
3
3
3
3
3
3
$14.00
$13.00
Fuel Cost ($/GJ)
$12.00
$11.00
$10.00
$9.00
$8.00
$7.00
$6.00
0
50
100
150
200
250
300
Transport Distance (kms)
Figure 6.1 Fuel Cost Vs Transport Distance

Note that at a distance between 75 and 100 kilometers an additional mobile transport trailer
must be added to the fleet.
43
JENMAR CONCEPTS
6.2.
Impact of Annual Load On Fuel Cost
The impact of fuel cost on annual load is analyzed based on the following assumptions.
Constant travel distance of 50 km (one way).
The cost per GJ of the fuel delivered into the mobile storage trailer is constant at the
base case cost. It is assumed that the mother station serves numerous customers
to maintain a high station load equivalent to the base case.
The same trailer size is used in all cases as the base case. Reducing trailer size
within the load range is considered sub-optimal.
The De-Canting system capital cost is scaled down with load in accordance with the
following table.
Table 6.3 PRS Installed Cost
Annual Load
250000
200000
150000
100000
50000
PRS size (GJ/day)

1000
750
500
250
160
Equipment Cost
$ 146,600.00
$ 130,000.00
$ 105,000.00
$
75,000.00
$
52,000.00
Total Installed
$ 237,274.40
$ 220,674.00
$ 185,000.00
$ 145,000.00
$ 112,000.00
The following chart shows the variation of delivered fuel cost with annual load.
$11.00
$10.50
$10.00
Fuel Cost ($/GJ)
$9.50
$9.00
$8.50
$8.00
$7.50
$7.00
$6.50
$6.00
0
50000
100000
150000
200000
250000
300000
Fuel Load (GJ/Annum)
Figure 6.2 Fuel Cost Vs Fuel Load for 50 Km Travel Distance
6.3.
Impact of Various Mobile Storage Trailer Selections

44
JENMAR CONCEPTS
The impact of trailer selection on delivered fuel cost for the base line case is considered by
varying the trailer selection only. The results are shown below for a variety of selections.
Table 6.4 Trailer Specifications Vs Delivered Fuel Cost
Lincoln Composite
Type 4
Unit
Canadian TC Approvals
Design Standard
Total CNG Transferred Per
Delivery (GJ HHV)
Delivered Price ($/GJ)

(line)
Fill Pressure (psig)

Capital Cost
Capital Cost/GJ Capacity
Delivered Fuel Cost ($/GJ)
$
$
$
Titan Module
Fiba Canning
Type 1
4 Tube Quad Axel
Jumbo
None
ISO 11119
TDG
CSA B339
BT-30
TDG Equivalency
Certificate
ISO 11119
375
308
311
234
196
2750
400,000 $
1,300 $
8.98 $
3250
615,000 $
1,978 $
9.20 $
2640
300,000 $
1,282 $
9.56 $
3624
252,100
1,289
9.95
3612
485,000 $
1,294 $
8.79 $
Dynetek
Type 3
Fiba Canning
Type 1
13 Tube Tridem
Jumbo
CP Industries Inc.
Type 1
ISO IMDG/MRGC
/CSC
TDG
CSA B339
TDG
CSA B339
$10.20
400
$10.00
350
$9.80
300
$9.60
$9.40
250
$9.20
200
$9.00
150
$8.80
100
$8.60
Energy trasferred (GJ)

(bars)
Manufacturer
Cylinder Technology
50
$8.40
$8.20
0
Lincoln
Composites
Fiba Canning
Dynetek
Fiba Canning
CP Industries
Manufacturer
Figure 6.3 - Fuel cost Vs Trailer Selection
7. SUMMARY AND CONCLUSIONS

45
JENMAR CONCEPTS
Off-grid transport of CNG in Canada has been used by utilities for years as a source of makeup gas during distribution piping maintenance; however, the application of CNG gas transport
to off-grid customers on a continuous and high volume basis is new in Canada. Most of the
activity to date has been off shore. Recently there has been increased interest to deliver
CNG to oil and gas field operations in British Columbia, Alberta and Saskatchewan. The
economics are increasingly favoring use of CNG to displace expensive diesel fuel used to
operate equipment in the field. The technology to load, de-cant and pressure reduce high
pressure gas at high volume rates from mobile storage trailers on a continuous basis is a new
application. The technology is advanced enough for viable and economic operation; however
there continue to be technology issues that can create challenges. These include (1) the lack
of approved high capacity connection nozzles; (2) under-filling of gas storage cylinders due to
warm compressor discharge gas and the heat of compression within the cylinders; (3) the
lack of high capacity drive-away safety devices; (4) controls issues with pressure reduction
systems due to the large and sudden variations in process conditions from high pressure to
lower pressure de-canting operations and (5) the high cost, high road weight and limited
capacity of gas storage cylinders to provide for large CNG transport loads. Innovative ideas
to overcome these challenges continue to come forward in the industry.
The single user case study provided a base line for delivered fuel cost to a customer with a
250,000 GJ load and located 50 kilometers from the mother station. The all-in delivered fuel
cost was estimated to be $8.98 and $9.05 per GJ for an electric driven and gas engine driven
mother station respectively. Based on this analysis, an electric driven mother station is
preferred not only from a cost standpoint but also by way of increased simplicity and
reliability.
A sensitivity analysis was undertaken to evaluate the impact of key variable changes. This
analysis leads to the following conclusions for fuel users in the 50,000 GJ and higher range.
The largest contributor to fuel cost is the operating costs associated with gas
transport. To reduce operating costs, the transported load size must increase for
large users. The smallest load size considered in the load sensitivity study was
50,000 GJ per annum. For loads above this size, increased investment in the highest
transport capacity available is favored and will reduce overall delivered fuel cost.
Operating costs for gas transport are highly impacted by travel distance. The
relationship is linear until the increase in travel time reaches a threshold where an
additional mobile storage trailer must be added to the operation. After a storage
trailer is added the cost versus distance relationship remains linear except for an
added cost offset.
Reductions in customer load increases the cost of fuel delivered substantially.
Increased costs are mainly associated with the lack of utilization of capital tied up on
the gas transport equipment. Operating costs also increase slightly due to fixed costs
amortized over few energy units delivered.
Operating costs for mother stations is the second largest contributor to delivered fuel
gas cost. The mother station must be sized to operate with a high duty cycle.
Maximizing throughput of the mother station significantly reduces operations costs
including maintenance and energy. Electrical demand charges favor continuous
46
JENMAR CONCEPTS
loading. Maintenance costs have a large fixed cost component which becomes less
significant with high throughput.
High gas supply pressure to the mother station provides substantial savings in all cost
categories.
De-canting system capital and operating costs are not significant where per annum
loads are 50,000 GJ and up. Capital costs for De-canting systems do not turn down
very well with load and are expected to be much more important cost contributors as
per annum loads much smaller than 50,000 GJ are considered.
A comparison of conventional energy sources including electricity, propane, and heating oil
reveals that CNG can be very competitive with these conventional fuels. The most
competitive fuel is propane with an average cost in Nova Scotia of approximately $17.25/GJ.
For a 250,000 GJ per annum load at a 50 km distance the estimated cost was $8.98/GJ.
This leaves ample room for some additional administration and profit, while maintaining
competitiveness.
Based on the above findings, sale of CNG transported natural gas to large users of at least
50,000 GJ per annum and located within reasonable travel distances provides a competitive
alternative to conventional energy sources.
47
JENMAR CONCEPTS
APPENDIX A
Process Flow Diagrams
48
JENMAR CONCEPTS

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FEASIBILITY STUDY

Evaluation of Technical and Economic

This report is funded by a grant to QUEST from the

- COMMERCIAL CONFIDENTIAL JENMAR CONCEPTS

5. PHASE 1 SINGLE USER CASE STUDY

APPENDIX A PROCESS FLOW DIAGRAM

PROCESS DESIGN OVERVIEW

Compression of gas into mobile storage containers at the mother station

3.1. Mother Station

3.3. De-Canting Station

Gas Metering And Regulation

Figure 4.1 Single Tower Natural Gas Dryer Flow Diagram

Figure 4.2 Single Tower Regenerative Natural Gas Dryer

CNG Compressors and Packaging

temperature embrittlement. For cold climates, weather enclosures large enough to

Communication and Controls

4.1.5.1. Station Control

Fill Pressure (psig)

Gas Temperature (oC)

Figure 4.3 Temperature Compensated Pressure DOT/TC 3AAX-2900 Gas

4.1.5.4. Buffer Storage

CNG Bulk Transport

4.2.1. Gas Cylinders And Certification

CAN/CSA-B339 - This standard is prepared for use in conjunction with TDG

ISO 11119 (Parts 1, 2 and 3) This is an international standard that is in the

Equivalency Certificate (Permit) Transport Canada has provision for application

4.2.3. Gas Cylinder Suppliers

Package a variety of sizes of Type 1 steel cylinder trailers

Dynetek (Calgary, AB)

Lincoln Composites (Lincoln, NE)

Manufacture Type 4 tanks with non-metallic liner and composites

De-Canting and Pressure Letdown Systems

A process flow diagram of a De-Canting System is shown in Appendix A. De-canting point(s)

Pressure Reduction System (PRS)

Two or more stages of pressure regulation

to eliminate liquid drop out, i.e. water vapor

direct fired tube heaters

Staged Pressure Regulation

PRS System Performance Limitations

4.3.3.6. Primary Regulators

Codes Standards And Approvals

4.3.4.1. Mother Stations

5. PHASE 1 SINGLE USER CASE STUDY

Single User Study Case Definition

Base Line Operations Assumptions

Mother Station System Design

Figure 5.1 Mother Station Concept Flow Diagram

Mother Station Equipment Selection

- High flow fill post for flow up to 1000 scfm

IMW50/100 Compressor No. 2

Other 575V Loads

Other 120V Loads

Other 575V Loads

Other 120V Loads

5.6. Site Design Concepts

De-Canting Station Site

Mobile Storage Transport Equipment

Figure 5.2 Self-steer Quad-axle semi-trailer

5.8. Operations Summary

The operations study highlights the following important points.

2 mobile storage trailers are required for this customer.

Project Capital Cost Breakdown

Figure 5.3 Mother Station Cost Breakdown - Electric Drive

Figure 5.4 Mother Station Cost Breakdown - Gas Engine Drive